403B Question

Submitted by Kevin O'Hearn on Mon, 2021-10-11 23:38

Hello,

I have a pastor that works for a church and has a 403b and receives a tax free housing allowance. He is coming up on RMD age. The question is….do the tax free distributions that are made from the 403b for the housing allowance count toward the client’s RMD?

Any insight would be much appreciated. Thank you.



Submitted by Alan - IRA critic on Tue, 2021-10-12 02:03

Yes, they count toward the RMD. A distribution from a plan in an RMD year does not have to be taxable to count toward the RMD.

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